LIMA, March 14 The head of Peru's central bank
on Tuesday praised the government's plan to increase public
investments to spur economic growth ahead of an expected
slowdown, but said it must also make sure that allocated funds
are actually spent.
Government offices in Peru from large ministries to small
municipalities often fail to spend much of their budget due to a
weak bureaucracy - stifling sorely needed public works and
faster economic growth.
Last week the government of President Pedro Pablo Kuczynski
announced plans to spend an extra $1.67 billion on public
investments this year to counter an expected
slowdown due to a massive corruption scandal.
"It was really indispensable to raise public investment. But
the problem isn't just setting a higher amount, but spending
it," Central Bank President Julio Velarde told reporters. "The
concern should be about effectively executing that spending."
Velarde added that government spending should pick up as
authorities try to quickly help towns in northern Peru cope with
devastating flooding from relentless rains.
(Reporting by Teresa Cespedes; Writing by Mitra Taj; Editing by